Right Panel: The market: a shift of short-run supply in response to an increase in demand.
-Refer to the diagrams above.If the market demand for wheat and the market supply of wheat are represented by D' and SRS,respectively,the market price is ____ per bushel and the firm will produce _____ bushels of wheat per year.
A) $1.20;12 million
B) $1.20;12 thousand
C) more than $1.20;more than 12 thousand
D) less than $1.20;more than 12 million
E) more than $1.20;more than 12 million

Question

Right Panel: The market: a shift of short-run supply in response to an increase in demand. 
-Refer to the diagrams above.If the market demand for wheat and the market supply of wheat are represented by D' and SRS,respectively,the market price is ____ per bushel and the firm will produce _____ bushels of wheat per year.
A) $1.20;12 million 
B) $1.20;12 thousand 
C) more than $1.20;more than 12 thousand 
D) less than $1.20;more than 12 million 
E) more than $1.20;more than 12 million

Quizplus · Accepted Answer

The market price is determined where the demand curve D' intersects the supply curve SRS. The given options suggest that this intersection occurs at a price of $1.20 per bushel, with the firm producing 12 thousand bushels per year.

Right Panel: the Market: a Shift of Short-Run Supply in Response